PARENTS TO BE are being warned not to splash out on expensive and unnecessary items for their baby and instead invest the money in their future.

Research shows the cost of bringing up a child in the first five years of its life has rocketed to almost é47,000.

But experts say the financial burden can be eased significantly by following a few simple financial steps.

The Children's Mutual and Manchester's Co-operative Insurance Society have joined forces to put together a list of money-saving tips which they claim could save new families hundreds of pounds a year.

David Newman, director of marketing at Co-operative Insurance, said: "With a little careful budgeting and some sensible planning, the arrival of a new baby can be a miraculous event with no financial worries.

"Ask grandparents, godparents and friends to contribute to your new baby's Child Trust Fund instead of buying a token gift. That way, your child will be well on his/her way to a healthy financial head-start in the future."

Finances in the home

Consider changing your mortgage to reduce your monthly outgoings. If you opt for a fixed-rate mortgage, you don't have to worry if interest rates rise as your monthly payments will stay the same.

Re-evaluate your choice of vehicle

Think about a more economical run-around with low fuel emissions and modest maintenance costs. A more family-friendly car would also lower the cost of motor insurance and vehicle excise duty.

Your income

It is a good idea to save any extra money you would have spent on socialising or going to the gym throughout the pregnancy. This will be extremely useful, especially when the Statutory Maternity Pay (SMP) sets in.

Vouchers galore

Many companies such as Boots have specific baby clubs where you collect points from your purchases and redeem them in store.

Set up a babysitting circle

The escalating cost of childcare is bound to be a worry for all new parents, so a babysitting circle might be worth considering. Parents could save around é30 an evening by getting together with a few friends and exchanging babysitting favours.

Real nappies

Real nappies are now a lot easier to use and wash, better for your baby and can save you lots of money. It is estimated that disposable nappies will cost parents more than é920 over two-and-a-half years. Cloth nappies, on the other hand, come in at under é200 over the same period, saving almost é300 a year.

Claim your benefits

Don't forget to claim child benefit to which all families are entitled. This will then trigger the delivery of a é250 Child Trust Fund voucher. Also, check with your local government office if you're entitled to claim Working Family Tax Credit, which can go a long way into helping with the costs of childcare.

Make your own purees

Making your own baby food is a quick, easy and much healthier alternative to convenience jars. Apples, pears, peaches, plums, mangoes and strawberries all puree well.

Second-hand saver

Check out the internet for cut-price equipment. You could also try putting up a request with details of things you would like to buy on your company's notice board or at the nursery.

Goodbye maternity wear

Make use of internet sites such as e-bay and clear out your wardrobe once the baby arrives. Most maternity wear is as good as new. Ask friends and family if they have any old maternity clothes stashed away.